PancakeSwap has proposed a bigger cut of swap fees for liquidity providers (LPs) and a sharp reduction in new $CAKE issuance. @cz_binance has backed the plan on X, writing: "More liquidity re
PancakeSwap has proposed a bigger cut of swap fees for liquidity providers (LPs) and a sharp reduction in new $CAKE issuance. @cz_binance has backed the plan on X, writing: "More liquidity rewards. Less emission."
@PancakeSwap's core team, known as the Kitchen, calls the plan "The Flip." According to the proposal on PancakeSwap's forum, LPs on v3 and Infinity would keep 88% of swap fees across all 11 supported chains, up from around two-thirds on most pools today. The remaining 12% would go to the Treasury, and v2 would stay unchanged.
On emissions, the proposal would cut effective $CAKE issuance by about 69%, from 22,500 to 7,000 tokens per day. The forum post says those 7,000 tokens would go to the Pantry, a new ecosystem growth fund. The Kitchen argues that with LPs keeping more fees, emissions are no longer needed at today's level.
The fee increase would differ by pool. Reporting by The Defiant notes that PancakeSwap's fee documentation lists LP shares of 66% to 68% on EVM v3 pools and 84% on Solana v3 pools. The same report says existing Infinity pools work differently: their LP fees are fixed at creation, so lowering the protocol charge would reduce the total swap fee rather than raise the LP share.
The Kitchen estimates v3 and Infinity LPs would have earned about $62 million more if the new split had applied to 2025 trading volume, according to DeFi Prime. That figure is a historical simulation, not a forecast of future revenue.
The v2 fee structure, which includes a mechanism that buys back and burns $CAKE, would remain intact, Crypto Briefing reports. The same report cites a net $CAKE supply reduction of roughly 15% to 16% as of October 2026, with supply falling from about 392 million tokens in September 2023 to around 330 million. The forum post says $CAKE stays on track for a 20% supply reduction by 2030 under the proposal.
The plan is still at the discussion stage. The Kitchen intends to review forum feedback before publishing a final proposal for a Snapshot vote, and no changes have passed yet, DeFi Prime reports. TechFlow reports that, if approved, the adjustments are scheduled to begin in November 2026 and be fully deployed by the end of January 2027.
Sources:
PancakeSwap Forum: The Flip proposal discussionDeFi Prime: PancakeSwap proposes 88% LP fee share and lower $CAKE emissionsThe Defiant (via Cryptonews): PancakeSwap Proposes 88% LP Fee Share and 69% CAKE Emissions Cut
